Jones Soda (JSDA) 10-Q 11 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	JONES SODA CO
Entity Central Index Key	1,083,522
Trading Symbol	jsda
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		41,317,394

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 584	$ 772
Accounts receivable, net of allowance of $37 and $27	2,736	1,840
Inventory	2,514	2,569
Prepaid expenses and other current assets	80	116
Total current assets	5,914	5,297
Fixed assets, net of accumulated depreciation of $915 and $907	32	37
Other assets	21	20
Total assets	5,967	5,354
Current liabilities:
Accounts payable	1,727	1,786
Line of credit	1,187	908
Accrued expenses	1,059	850
Taxes payable	44	30
Other current liabilities		2
Total current liabilities	4,017	3,576
Deferred rent	11	11
Shareholders' equity:
Common stock, no par value: Authorized — 100,000,000; issued and outstanding shares — 41,317,394 shares and 41,314,894 shares, repectively	53,765	53,764
Additional paid-in capital	8,544	8,467
Accumulated other comprehensive income	323	213
Accumulated deficit	(60,693)	(60,677)
Total shareholders' equity	1,939	1,767
Total liabilities and shareholders' equity	$ 5,967	$ 5,354

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current Assets:
Allowance for accounts receivable	$ 37	$ 27
Accumulated depreciation	$ 915	$ 907
Stockholders' Equity:
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	41,317,394	41,314,894
Common stock, shares outstanding	41,317,394	41,314,894

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Condensed Consolidated Statements Of Operations [Abstract]
Revenue	$ 4,304	$ 4,262	$ 8,578	$ 7,155
Cost of goods sold	3,218	3,209	6,320	5,360
Gross profit	1,086	1,053	2,258	1,795
Operating expenses:
Selling and marketing	505	542	1,047	974
General and administrative	587	603	1,151	1,142
Operating expenses	1,092	1,145	2,198	2,116
Income (loss) from operations	(6)	(92)	60	(321)
Interest expense	(21)	(16)	(43)	(24)
Other (expense) income, net	(29)	2	(17)	(33)
Loss before income taxes	(56)	(106)		(378)
Income tax expense, net	(9)	(10)	(16)	(16)
Net loss	$ (65)	$ (116)	$ (16)	$ (394)
Net loss per share - basic and diluted	$ 0	$ 0	$ 0	$ (0.01)
Weighted average basic and diluted common shares outstanding	41,315,727	41,075,505	41,315,308	41,023,950

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Condensed Consolidated Statements Of Comprehensive Income (Loss) [Abstract]
Net loss	$ (65)	$ (116)	$ (16)	$ (394)
Other comprehensive income (loss):
Foreign currency translation adjustment gain (loss)	90	(21)	110	27
Total comprehensive income (loss)	$ 25	$ (137)	$ 94	$ (367)

Condensed Consolidated Stateme6

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES:
Net loss	$ (16)	$ (394)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	8	14
Stock-based compensation	77	130
Change in allowance for doubtful accounts	10	(5)
Changes in operating assets and liabilities:
Accounts receivable	(810)	(1,344)
Inventory	79	(902)
Prepaid expenses and other current assets	36	(17)
Other assets		10
Accounts payable	(59)	1,671
Accrued expenses	201	(118)
Taxes payable	12	(14)
Other liabilities		(15)
Net cash used in operating activities	(462)	(984)
INVESTING ACTIVITIES:
Purchase of fixed assets	(5)	(14)
Net cash used in investing activities	(5)	(14)
FINANCING ACTIVITIES:
Proceeds from exercise of stock options	1	114
Payment of capital lease obligations	(2)	(7)
Proceeds from line of credit, net of repayments	279	729
Net cash provided by financing activities	278	836
Net decrease in cash and cash equivalents	(189)	(162)
Effect of exchange rate changes on cash	1	(28)
Cash and cash equivalents, beginning of period	772	857
Cash and cash equivalents, end of period	584	667
Supplemental disclosure:
Interest	43	24
Income taxes		$ 30

Nature Of Operations And Summar

Nature Of Operations And Summary Of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract]
Nature Of Operations And Summary Of Significant Accounting Policies	1. Nature of Operations and Summary of Significant Accounting Policies Jones Soda Co. develops, produces, markets and distributes premium beverages which it sell s and distribute s primarily in United States and Canada through its network of independent distributors and directly to its national and regional retail accounts. We are a Washington corporation and have two operating subsidiaries, Jones Soda Co. (USA) Inc. and Jones Soda (Canada) Inc. (“Subsidiaries”).  Basis of presentation and consolidation The accompanying condensed consolidated balance sheet as of December 31, 2015 , which has been derived from our audited consolidated financial statements, and unaudited interim condensed consolidated financial statements as of June 30, 2016 , has been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and the Securities and Exchange Commission (SEC) rules and regulations applicable to interim financial reporting. The condensed consolidated financial statements include our accounts and accounts of our wholly owned subsidiaries. All intercompany transactions between us and our subsidiaries have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments, consisting only of those of a normal recurring nature, considered necessary for a fair presentation of our financial position, results of operations and cash flows at the dates and for the periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 .  Liquidity As of June 30, 2016 , we had cash and cash-equivalents of approximately $ 584 ,000 and working capital of $ 1.9 million. Cash used in operations during the six months ended June 30, 2016 totaled $ 462 ,000 compared to $984,000 for the same period a year ago. The decrease in cash used in operations compared to the same period a year ago is primarily due to an increase in sales volume. We reported a net loss of $ 65 ,000 for the three months ended June 30, 2016 . As of the date of this Report, we believe that our current cash and cash equivalents, combined with our Loan Facility and anticipated cash from operations, will be sufficient to meet our anticipated cash needs through June 30, 2017 . We have a revolving secured credit facility (the “Loan Facility”) with CapitalSource Business Finance Group . The Loan Facility allows us to borrow a maximum aggregate amount of up to $ 3.2 million based on eligible accounts receivable and inventory . As of June 30, 2016 , our accounts receivable and inventory eligible borrowing base was approximately $ 1.9 million, of which we had drawn down $1.2 million. See Note 3 for further information. We may require additional financing to support our working capital needs in the future. The amount of additional capital we may require, the timing of our capital needs and the availability of financing to fund those needs will depend on a number of factors, including our strategic initiatives and operating plans, the performance of our business and the market conditions for debt or equity financing. Additionally, the amount of capital required will depend on our ability to meet our case sales goals and otherwise successfully execute our operating plan. We believe it is imperative to meet these sales objectives in order to lessen our reliance on external financing in the future. We intend to continually monitor and adjust our business plan as necessary to respond to developments in our business, our markets and the broader economy. Although we believe various debt and equity financing alternatives will be available to us to support our working capital needs, financing arrangements on acceptable terms may not be available to us when needed. Additionally, these alternatives may require significant cash payments for interest and other costs or could be highly dilutive to our existing shareholders. Any such financing alternatives may not provide us with sufficient funds to meet our long-term capital requirements. If necessary, we may explore strategic transactions that we consider to be in the best interest of the Company and our shareholders, which may include, without limitation, public or private offerings of debt or equity securities, a rights offering, and other strategic alternatives; however, these options may not ultimately be available or feasible. The uncertainties relating to our ability to successfully execute on our business plan and finance our operations continue to raise substantial doubt about our ability to continue as a going concern. Our financial statements for the periods presented were prepared assuming we would continue as a going concern, which contemplates that we will continue in operation for the foreseeable future and will be able to realize assets and settle liabilities and commitments in the normal course of business. These financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that could result should we be unable to continue as a going concern.  Seasonality and other fluctuations Our sales are seasonal and we experience fluctuations in quarterly results as a result of many factors. We historically have generated a greater percentage of our revenues during the warm weather months of April through September. Sales may fluctuate materially on a quarter to quarter basis or an annual basis when we launch a new product or fill the “pipeline” of a new distribution partner or a large retail partner such as 7-Eleven. Sales results may also fluctuate based on the number of SKUs selected or removed by our distributors and retail partners through the normal course of serving consumers in the dynamic, trend-oriented beverage industry. As a result, management believes that period-to-period comparisons of results of operations are not necessarily meaningful and should not be relied upon as any indication of future performance or results expected for the fiscal year.  Use of estimates The preparation of the condensed consolidated financial statements requires management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, inventory valuation, depreciable lives and valuation of capital assets, valuation allowances for receivables, trade promotion liabilities, stock-based compensation expense, valuation allowance for deferred income tax assets, contingencies, and forecasts supporting the going concern assumption and related disclosures. Actual results could differ from those estimates.  Recent accounting pronouncements  In May 2014, the Financial Accounting Standards Board (‘‘FASB’’) issued Accounting Standard Update (‘‘ASU’’) 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The ASU is effective for public entities for annual periods beginning after December 15, 2017. In June 2015, the FASB deferred for one year the effective date of the new revenue standard, with an option that would permit companies to adopt the standard as early as the original effective date. Early adoption prior to the original effective date is not permitted. We are evaluating the impact this standard may have on our revenue recognition, but do not expect that the adoption will have a material impact on our consolidated financial statements.  I n July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330) , to amend Topic 330, Inventory. Topic 330 currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. ASU 2015-11 requires that inventory measured using either the first-in, first-out (FIFO) or average cost method be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Adoption of ASU 2015-11 is required for fiscal reporting periods beginning after December 15, 2016, including interim reporting periods within those fiscal years. We do not expect adoption of ASU 2015-11 to have a material impact on our consolidated financial statements.  In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU is intended to provide more transparent and economically neutral information about the assets and liabilities that arise from leases than previous guidance. The ASU is effective for public entities for annual periods beginning on or after December 15, 2018. Early adoption is permitted, and adoption must be applied on a modified retrospective basis. We are evaluating the impact of this standard but do not expect that the adoption will have a material impact on our consolidated financial statements.  I n March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting which amends ASC 718 , Compensation — Stock Compensation . The ASU includes provisions intended to simplify various provisions related to how share-based payments are accounted for and presented in the financial statements. The ASU is effective for public entities for annual periods beginning on or after December 15, 2016 and interim periods within that reporting period. Early adoption is permitted in any interim or annual period. We are evaluating the impact of this standard but do not expect that the adoption will have a material impact on our financial statements.

Inventory

Inventory	6 Months Ended
	Jun. 30, 2016
Inventory [Abstract]
Inventory	2. Inventory Inventory consisted of the following (in thousands):    June 30, 2016 December 31, 2015  Finished goods $ 1,519 $ 1,842  Raw materials 995 727  $ 2,514 $ 2,569 Finished goods primarily include product ready for shipment, as well as promotional merchandise held for sale. Raw materials primarily include ingredients, concentrate and packaging.

Line Of Credit

Line Of Credit	6 Months Ended
	Jun. 30, 2016
Line Of Credit [Abstract]
Line Of Credit	3. Line of Credit We have a revolving secured Loan Facility with CapitalSource Business Finance Group (“CapitalSource”) , pursuant to which we, through our Subsidiaries, may borrow a maximum aggregate amount of up to $3.2 million, subject to satisfaction of certain conditions. We originally entered into this Loan Facility on December 27, 2013 , and amended and renewed it for an additional year as of December 18 , 201 5 and January 7, 2016 . Under this Loan Facility, we may periodically request advances equal to the lesser of: (a) $3.2 million, or (b) the Borrowing Base which is, in the following priority, the sum of: (i) 85% of eligible U.S. accounts receivable, plus (ii) 35% of finished goods inventory not to exceed $475,000 , plus (iii) 50% of eligible Canadian accounts receivable not to exceed $300,000 , subject to any reserve amount established by CapitalSource . As of June 30, 2016 , our accounts receivable and inventory eligible borrowing base was approximately $1.9 million, of which we had drawn down $ 1.2 million . Advances under the Loan Facility as amended in January 2016, bear interes t at the prime rate plus 1% , and a loan fee of 0.15% on the daily loan balance is payable to CapitalSource on a monthly basis with a minimum annual interest requirement of $30,000 . The Loan Facility has a term of one year which automatically extends for successive one year terms unless either party gives at least 30 days' prior written notice of its intent to terminate the Loan Facility at the end of the then current term. The Company pays an annual fee of 0.75% of the total commitment . CapitalSource has the right to terminate the Loan Facility at any time upon 120 days’ prior written notice. All present and future obligations of the Subsidiaries arising under the Loan Facility are guaranteed by us and are secured by a first priority security interest in all of our assets. The Loan Facility contains customary representations and warranties as well as affirmative and negative covenants. As of June 30, 2016 , we were in compliance with all covenants under the Loan Facility . The draws on the Loan Facility were used to fulfill working capital needs . We will continue to utilize the Loan Facility, as needed, for working capital needs in the future.

Warrants

Warrants	6 Months Ended
	Jun. 30, 2016
Warrants [Abstract]
Warrants	4. Warrants In February 2012 as part of our registered offering, we sold and issued warrants for the purchase of up to 3,207,500 shares of common stock. Each warrant has an exercise price of $ 0.70 per share, for total potential proceeds to us of up to $2,245,250 if all of the warrants are exercised in full for cash. The warrants are exercisable for cash or, solely in the absence of an effective registration statement, by cashless exercise. The exercise price of the warrants is subject to adjustment in the case of stock splits, stock dividends, combinations of shares and similar recapitalization transactions, and also upon any distributions to Company shareholders, business combinations, sale of substantially all assets and other fundamental transactions. The exercise of the warrants is subject to certain beneficial ownership limitations and other restrictions set forth in the warrant documents. The term of the warrants expires on August 6, 2017 . Any remaining warrants that are outstanding on August 6, 2017 , the expiration date, will automatically be exercised at that time by cashless exercise (to the extent that the volume weighted average trading price of our common stock as of such date exceeds the warrant exercise price). As of June 30, 2016 , 3,057,500 of the warrants remain outstanding . No warrants were exercised during the six months ended June 30, 2016 .

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2016
Shareholders' Equity [Abstract]
Shareholders' Equity	5. Shareholders’ Equity Under the terms of our 2011 Incentive Plan (the “Plan”), the number of shares authorized under the Plan may be increased each January 1st by an amount equal to the least of (a) 1,300,000 shares, (b) 4.0 % of our outstanding common stock as of the end of our immediately preceding fiscal year, and (c) a lesser amount determined by the Board of Directors (the “Board”), provided that the number of shares that may be granted pursuant to awards in a single year may not exceed 10 % of our outstanding shares of common stock on a fully diluted basis as of the end of the immediately preceding fiscal year. Effective January 1, 2016 , the total number of shares of common stock authorized under the Plan increased to 9,484,032 shares . Under the terms of the Plan, the Board may grant awards to employees, officers, directors, consultants, agents, advisors and independent contractors. Awards may consist of stock options, stock appreciation rights, stock awards, restricted stock, stock units, performance awards or other stock or cash-based awards. Stock options are granted at the closing price of our stock on the date of grant, and generally have a ten -year term and vest over a period of 48 months with the first 25.0 % cliff vesting one year from the grant date and monthly thereafter. As of June 30, 2016 , there were 3,723,538 shares of unissued common stock authorized and available for future awards under the Plan. (a) Stock options: A summary of our stock option activity is as follows:    Outstanding Options  Number of Shares Weighted Average Exercise Price  Balance at January 1, 2016 3,117,820 $ 0.58  Options granted 540,000 0.50  Options exercised (2,500) 0.34  Options cancelled/expired (117,500) 0.36  Balance at June 30, 2016 3,537,820 $ 0.54  Exercisable, June 30, 2016 2,371,883 $ 0.58  Vested and expected to vest 3,196,282 $ 0.55 (b) Stock-based compensation expense: Stock-based compensation expense is recognized using the straight-line attribution method over the employees’ requisite service period. We recognize compensation expense for only the portion of stock options or restricted stock expected to vest. Therefore, we apply estimated forfeiture rates that are derived from historical employee termination behavior. If the actual number of forfeitures differs from those estimated by management, additional adjustments to stock-based compensation expense may be required in future periods. At June 30, 2016 , we had unrecognized compensation expense related to stock options of $ 214,000 to be recognized over a weighted-average period of 2.8 years. The following table summarizes the stock-based compensation expense attributable to stock options (in thousands):    Three months ended June 30, Six months ended June 30,  2016 2015 2016 2015  Income statement account:  Selling and marketing $ 14 $ 11 $ 25 $ 24  General and administrative 34 79 52 106  $ 48 $ 90 $ 77 $ 130 We employ the following key weighted-average assumptions in determining the fair value of stock options, using the Black-Scholes option pricing model and the simplified method to estimate the expected term of “plain vanilla” options:    Six months ended June 30,  2016 2015  Expected dividend yield — —  Expected stock price volatility 87.2 % 88.3 %  Risk-free interest rate 1.7 % 1.6 %  Expected term (in years) 6.1 years 5.4 years  Weighted-average grant date fair-value $ 0.37 $ 0.24 The aggregate intrinsic value of stock options outstanding at June 30, 2016 and 2015 was $ 691,000 and $ 21,000 and for options exercisable was $ 458,000 and $ 16,000 , respectively. The intrinsic value of outstanding and exercisable stock options is calculated as the quoted market price of the stock at the balance sheet date less the exercise price of the option. There were 2,500 and 342,500 options exercised during the six months ended June 30, 2016 and 2015, respectively. The aggregate intrinsic value of the options exercised during the six months ended June 30, 2016 and 2015, was $1,000 and $2,000 respectively.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2016
Segment Information [Abstract]
Segment Information	6. Segment Information We have one operating segment with operations primarily in the United States and Canada. Sales are assigned to geographic locations based on the location of customers. Sales by geographic location are as follows (in thousands):     Three months ended June 30, Six months ended June 30,  2016 2015 2016 2015  Revenue:  United States $ 3,230 $ 2,730 $ 6,724 $ 4,846  Canada 930 1,461 1,629 2,137  Other countries 144 71 225 172  Total revenue $ 4,304 $ 4,262 $ 8,578 $ 7,155   During the three months ended June 30, 2016 and 2015 , five and three of our customers represented approximately 41% and 35% , respectively , of revenue . During the six months ended June 30, 2016 and 2015 , four and three of our customers represented approximately 47% and 35% , respectively , of revenue .

Nature Of Operations And Summ13

Nature Of Operations And Summary Of Significant Accounting Policies (Policy)	6 Months Ended
	Jun. 30, 2016
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract]
Basis Of Presentation And Consolidation	Basis of presentation and consolidation The accompanying condensed consolidated balance sheet as of December 31, 2015 , which has been derived from our audited consolidated financial statements, and unaudited interim condensed consolidated financial statements as of June 30, 2016 , has been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and the Securities and Exchange Commission (SEC) rules and regulations applicable to interim financial reporting. The condensed consolidated financial statements include our accounts and accounts of our wholly owned subsidiaries. All intercompany transactions between us and our subsidiaries have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all material adjustments, consisting only of those of a normal recurring nature, considered necessary for a fair presentation of our financial position, results of operations and cash flows at the dates and for the periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 .
Liquidity	Liquidity As of June 30, 2016 , we had cash and cash-equivalents of approximately $ 584 ,000 and working capital of $ 1.9 million. Cash used in operations during the six months ended June 30, 2016 totaled $ 462 ,000 compared to $984,000 for the same period a year ago. The decrease in cash used in operations compared to the same period a year ago is primarily due to an increase in sales volume. We reported a net loss of $ 65 ,000 for the three months ended June 30, 2016 . As of the date of this Report, we believe that our current cash and cash equivalents, combined with our Loan Facility and anticipated cash from operations, will be sufficient to meet our anticipated cash needs through June 30, 2017 . We have a revolving secured credit facility (the “Loan Facility”) with CapitalSource Business Finance Group . The Loan Facility allows us to borrow a maximum aggregate amount of up to $ 3.2 million based on eligible accounts receivable and inventory . As of June 30, 2016 , our accounts receivable and inventory eligible borrowing base was approximately $ 1.9 million, of which we had drawn down $1.2 million. See Note 3 for further information. We may require additional financing to support our working capital needs in the future. The amount of additional capital we may require, the timing of our capital needs and the availability of financing to fund those needs will depend on a number of factors, including our strategic initiatives and operating plans, the performance of our business and the market conditions for debt or equity financing. Additionally, the amount of capital required will depend on our ability to meet our case sales goals and otherwise successfully execute our operating plan. We believe it is imperative to meet these sales objectives in order to lessen our reliance on external financing in the future. We intend to continually monitor and adjust our business plan as necessary to respond to developments in our business, our markets and the broader economy. Although we believe various debt and equity financing alternatives will be available to us to support our working capital needs, financing arrangements on acceptable terms may not be available to us when needed. Additionally, these alternatives may require significant cash payments for interest and other costs or could be highly dilutive to our existing shareholders. Any such financing alternatives may not provide us with sufficient funds to meet our long-term capital requirements. If necessary, we may explore strategic transactions that we consider to be in the best interest of the Company and our shareholders, which may include, without limitation, public or private offerings of debt or equity securities, a rights offering, and other strategic alternatives; however, these options may not ultimately be available or feasible. The uncertainties relating to our ability to successfully execute on our business plan and finance our operations continue to raise substantial doubt about our ability to continue as a going concern. Our financial statements for the periods presented were prepared assuming we would continue as a going concern, which contemplates that we will continue in operation for the foreseeable future and will be able to realize assets and settle liabilities and commitments in the normal course of business. These financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that could result should we be unable to continue as a going concern.
Seasonality And Other Fluctuations	Seasonality and other fluctuations Our sales are seasonal and we experience fluctuations in quarterly results as a result of many factors. We historically have generated a greater percentage of our revenues during the warm weather months of April through September. Sales may fluctuate materially on a quarter to quarter basis or an annual basis when we launch a new product or fill the “pipeline” of a new distribution partner or a large retail partner such as 7-Eleven. Sales results may also fluctuate based on the number of SKUs selected or removed by our distributors and retail partners through the normal course of serving consumers in the dynamic, trend-oriented beverage industry. As a result, management believes that period-to-period comparisons of results of operations are not necessarily meaningful and should not be relied upon as any indication of future performance or results expected for the fiscal year.
Use Of Estimates	Use of estimates The preparation of the condensed consolidated financial statements requires management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, inventory valuation, depreciable lives and valuation of capital assets, valuation allowances for receivables, trade promotion liabilities, stock-based compensation expense, valuation allowance for deferred income tax assets, contingencies, and forecasts supporting the going concern assumption and related disclosures. Actual results could differ from those estimates.
Recent Accounting Pronouncements	Recent accounting pronouncements  In May 2014, the Financial Accounting Standards Board (‘‘FASB’’) issued Accounting Standard Update (‘‘ASU’’) 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The ASU is effective for public entities for annual periods beginning after December 15, 2017. In June 2015, the FASB deferred for one year the effective date of the new revenue standard, with an option that would permit companies to adopt the standard as early as the original effective date. Early adoption prior to the original effective date is not permitted. We are evaluating the impact this standard may have on our revenue recognition, but do not expect that the adoption will have a material impact on our consolidated financial statements.  I n July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330) , to amend Topic 330, Inventory. Topic 330 currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. ASU 2015-11 requires that inventory measured using either the first-in, first-out (FIFO) or average cost method be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Adoption of ASU 2015-11 is required for fiscal reporting periods beginning after December 15, 2016, including interim reporting periods within those fiscal years. We do not expect adoption of ASU 2015-11 to have a material impact on our consolidated financial statements.  In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU is intended to provide more transparent and economically neutral information about the assets and liabilities that arise from leases than previous guidance. The ASU is effective for public entities for annual periods beginning on or after December 15, 2018. Early adoption is permitted, and adoption must be applied on a modified retrospective basis. We are evaluating the impact of this standard but do not expect that the adoption will have a material impact on our consolidated financial statements.  I n March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting which amends ASC 718 , Compensation — Stock Compensation . The ASU includes provisions intended to simplify various provisions related to how share-based payments are accounted for and presented in the financial statements. The ASU is effective for public entities for annual periods beginning on or after December 15, 2016 and interim periods within that reporting period. Early adoption is permitted in any interim or annual period. We are evaluating the impact of this standard but do not expect that the adoption will have a material impact on our financial statements.

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory [Abstract]
Schedule Of Inventory	  June 30, 2016 December 31, 2015  Finished goods $ 1,519 $ 1,842  Raw materials 995 727  $ 2,514 $ 2,569 

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2016
Shareholders' Equity [Abstract]
Summary Of Stock Option Activity	  Outstanding Options  Number of Shares Weighted Average Exercise Price  Balance at January 1, 2016 3,117,820 $ 0.58  Options granted 540,000 0.50  Options exercised (2,500) 0.34  Options cancelled/expired (117,500) 0.36  Balance at June 30, 2016 3,537,820 $ 0.54  Exercisable, June 30, 2016 2,371,883 $ 0.58  Vested and expected to vest 3,196,282 $ 0.55 
Summary Of Stock-Based Compensation Expense	  Three months ended June 30, Six months ended June 30,  2016 2015 2016 2015  Income statement account:  Selling and marketing $ 14 $ 11 $ 25 $ 24  General and administrative 34 79 52 106  $ 48 $ 90 $ 77 $ 130 
Summary Of Weighted-Average Assumptions	  Six months ended June 30,  2016 2015  Expected dividend yield — —  Expected stock price volatility 87.2 % 88.3 %  Risk-free interest rate 1.7 % 1.6 %  Expected term (in years) 6.1 years 5.4 years  Weighted-average grant date fair-value $ 0.37 $ 0.24 

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Information [Abstract]
Schedule Of Geographic Information	  Three months ended June 30, Six months ended June 30,  2016 2015 2016 2015  Revenue:  United States $ 3,230 $ 2,730 $ 6,724 $ 4,846  Canada 930 1,461 1,629 2,137  Other countries 144 71 225 172  Total revenue $ 4,304 $ 4,262 $ 8,578 $ 7,155 

Nature Of Operations And Summ17

Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)item	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Number of operating subsidiaries | item			2
Cash and cash equivalents	$ 584	$ 667	$ 584	$ 667	$ 772	$ 857
Working capital	1,900		1,900
Net cash used in operating activities			462	984
Net loss	(65)	$ (116)	(16)	$ (394)
Revolving Credit Facility [Member] | CapitalSource [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Maximum borrowing capacity	3,200		3,200
Current borrowing capacity	1,900		1,900
Amount outstanding	$ 1,200		$ 1,200

Inventory (Schedule Of Inventor

Inventory (Schedule Of Inventory) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory [Abstract]
Finished goods	$ 1,519	$ 1,842
Raw materials	995	727
Inventory, Net	$ 2,514	$ 2,569

Line Of Credit (Narrative) (Det

Line Of Credit (Narrative) (Details) - CapitalSource [Member]	6 Months Ended
	Jun. 30, 2016USD ($)
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit, Borrowing capacity description	Under this Loan Facility, we may periodically request advances equal to the lesser of: (a) $3.2 million, or (b) the Borrowing Base which is, in the following priority, the sum of: (i) 85% of eligible U.S. accounts receivable, plus (ii) 35% of finished goods inventory not to exceed $475,000, plus (iii) 50% of eligible Canadian accounts receivable not to exceed $300,000, subject to any reserve amount established by CapitalSource
Line of credit, Interest rate description	1%
Line of credit, Covenant terms	The Loan Facility has a term of one year which automatically extends for successive one year terms unless either party gives at least 30 days' prior written notice of its intent to terminate the Loan Facility at the end of the then current term. The Company pays an annual fee of 0.75% of the total commitment. CapitalSource has the right to terminate the Loan Facility at any time upon 120 days' prior written notice.
Maximum borrowing capacity	$ 3,200,000
Current borrowing capacity	1,900,000
Amount outstanding	$ 1,200,000
Line of credit, Initial term	1 year
Line of credit, Extended term	1 year
Written notice period	30 days
Loan fee, percentage	0.75%
Termination period prior written notice	120 days
Line of credit, Covenant compliance	we were in compliance with all covenants under the Loan Facility
Revolving Credit Facility [Member] | United States [Member]
Line of Credit Facility [Line Items]
Percent of accounts receivable borrowing capacity	85.00%
Percent of finished goods inventory borrowing capacity	35.00%
Maximum amount of accounts receivable plus finished goods inventory borrowing capacity	$ 475,000
Revolving Credit Facility [Member] | Canada [Member]
Line of Credit Facility [Line Items]
Percent of accounts receivable borrowing capacity	50.00%
Maximum amount of accounts receivable borrowing capacity	$ 300,000
Advances Against Purchase Orders [Member]
Line of Credit Facility [Line Items]
Interest rate above prime rate	1.00%
Annual minimum interest payment	$ 30,000
Loan fee, percentage	0.15%

Warrants (Narrative) (Details)

Warrants (Narrative) (Details) - Warrant [Member] - USD ($)	6 Months Ended
	Jun. 30, 2016	Feb. 29, 2012
Class of Warrant or Right [Line Items]
Number of securities called by warrants, class of warrants		3,207,500
Warrant exercise price		$ 0.70
Potential additional proceeds from warrants		$ 2,245,250
Warrant, expiration date	Aug. 6, 2017
Warrants outstanding	3,057,500
Warrants exercised	0

Shareholders' Equity (Narrative

Shareholders' Equity (Narrative) (Details) - USD ($)	Jan. 01, 2016	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options exercised		$ 2,500	$ 342,500
Intrinsic value of options exercised		1,000	2,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		$ 214,000
Weighted average period for unrecognized compensation expense		2 years 9 months 18 days
Options outstanding, intrinsic value		$ 691,000	21,000
Options exercisable, intrinsic value		$ 458,000	$ 16,000
2011 Incentive Plan [Member] | Common [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, authorized shares	9,484,032
Common stock, authorized shares increase	1,300,000
Common stock, authorized percent increase		4.00%
Percentage of outstanding stock maximum		10.00%
2011 Incentive Plan [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option expiration period		10 years
Stock option vesting period		48 months
Number of shares available		3,723,538
2011 Incentive Plan [Member] | Cliff Vesting [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option first year cliff vesting		25.00%
Years after grant date		1 year

Shareholders' Equity (Summary O

Shareholders' Equity (Summary Of Stock Option Activity) (Details) - Stock Options [Member]	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding
Options, Outstanding, Number, Beginning Balance | shares	3,117,820
Options granted, Number of Shares | shares	540,000
Options exercised, Number of Shares | shares	(2,500)
Options cancelled/expired, Number of Shares | shares	(117,500)
Options, Outstanding, Number, Ending Balance | shares	3,537,820
Options, Exercisable, Number of Shares | shares	2,371,883
Options, Vested and Expected to Vest, Number of Shares | shares	3,196,282
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 0.58
Options granted, Weighted Average Exercise Price | $ / shares	0.50
Options exercised, Weighted Average Exercise Price | $ / shares	0.34
Options cancelled/expired, Weighted Average Exercise Price | $ / shares	0.36
Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	0.54
Options, Exercisable, Weighted Average Exercise Price | $ / shares	0.58
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares	$ 0.55

Shareholders' Equity (Summary23

Shareholders' Equity (Summary Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 48	$ 90	$ 77	$ 130
Selling And Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	14	11	25	24
General And Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 34	$ 79	$ 52	$ 106

Shareholders' Equity (Summary24

Shareholders' Equity (Summary Of Weighted-Average Assumptions) (Details) - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Shareholders' Equity [Abstract]
Expected dividend yield
Expected stock price volatility	87.20%	88.30%
Risk-free interest rate	1.70%	1.60%
Expected term (in years)	6 years 1 month 6 days	5 years 4 months 24 days
Weighted-average grant date fair-value	$ 0.37	$ 0.24

Segment Information (Narrative)

Segment Information (Narrative) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016customer	Jun. 30, 2015customer	Jun. 30, 2016segmentcustomer	Jun. 30, 2015customer
Segment Reporting Information [Line Items]
Number of operating segments | segment			1
Number of major customers | customer	5	3	4	3
Revenue [Member] | Five Major Customers [Member]
Segment Reporting Information [Line Items]
Major customer, percentage	41.00%
Revenue [Member] | Four Major Customers [Member]
Segment Reporting Information [Line Items]
Major customer, percentage			47.00%
Revenue [Member] | Three Major Customers [Member]
Segment Reporting Information [Line Items]
Major customer, percentage		35.00%		35.00%

Segment Information (Schedule O

Segment Information (Schedule Of Geographic Information) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Total Revenue	$ 4,304	$ 4,262	$ 8,578	$ 7,155
United States [Member]
Segment Reporting Information [Line Items]
Total Revenue	3,230	2,730	6,724	4,846
Canada [Member]
Segment Reporting Information [Line Items]
Total Revenue	930	1,461	1,629	2,137
Other Countries [Member]
Segment Reporting Information [Line Items]
Total Revenue	$ 144	$ 71	$ 225	$ 172